The KOSPI index plunged early on the 4th, triggering a sell-sidecar (a temporary suspension of program sell orders) for a second straight day. The move is seen as a result of heightened geopolitical risk following U.S. and Israeli airstrikes on Iran.
According to the Korea Exchange (KRX), a sell-sidecar was triggered on the KOSPI market at 9:06 a.m. Program-trading sell orders were then suspended for five minutes before being automatically lifted. This is the fifth sidecar this year. Program-trading transaction volume at the time was tallied as a net buy of 409.7 billion won.
A sidecar is triggered when KOSPI 200 futures rise or fall 5% or more from the previous close for one minute. The day before, the KOSPI index also plunged more than 7%, briefly triggering it.
As of 9:25 a.m., the KOSPI index was down 380.80 points (3.12%) from the previous trading day at 5,611.11. It slid to as low as 5,438.97 intraday, breaking below the 5,500 level. This is the first time in 11 trading days since on the 11th of last month.
At the same time, the KOSDAQ index fell 3.35% to 1,099.57.